By Mansoor Ahmad
LAHORE: Illegal flight of capital is a norm in Pakistan that reached its peak during the political chaos of 2008, while during the 2002-06 period, according to the US-based Global Financial Integrity report, it ranged from $2.03 to $3.06 billion per year.
The report states that China, with average illegal outflows of $289 billion during 2002-06 period, was on top while India with illegitimate outflows of $27.34 billion came in at number 5. Pakistan with $3.067 billion came in at the 36th position amongst 160 countries surveyed by Global Financial Integrity.
The report states that legal flight of capital is recorded on the books of the entity or individuals making the transfer, and earnings from interest, dividends and realised capital gains normally return to the country of origin. The methods used to transfer money illegally outside the country, as mentioned in the report, are generally practiced in Pakistan.
About illegal flight of capital, GFI report points out that it is intended to disappear from any record in the country of origin, and earnings on the stock of illegal capital flight outside of a country do not normally return to the country of origin.
Illegal capital flight can be generated through a number of means that are not revealed in national accounts or balance of payments figures, including trade mispricing, bulk cash movements, hawala transactions, smuggling and more.
The greater part of unrecorded flows are indeed illicit, violating the national criminal and civil codes, tax laws, customs regulations, VAT assessments, exchange control requirements and banking regulations of the countries out of which unrecorded/illicit flows occur.
The GFI report reveals that according to its estimates, illicit financial flows out of developing countries are some $850 billion to $1 trillion a year. Even this estimate according to GFI is conservative. It does not include, for example, major forms of value drainages out of poorer countries not represented by money, namely:
1) Trade mispricing that is handled by collusion between importers and exporters within the same invoice, not picked up in mispricing models based on IMF Direction of Trade Statistics, a technique utilised extensively by multinational corporations.
2) The proceeds of criminal and commercial smuggling such as drugs, minerals, and contraband goods.
3) Mis-priced asset swaps, where ownership of commodities, shares, and properties are traded without a cash flow.
Non-trade capital flight often involves the acquisition of cash or other instruments payable to the bearer.
The acquired currency, say dollars, could exit the country in a number of ways such as (i) by someone carrying suitcases full of cash, (ii) through professional courier service, (iii) by mail or, (iv) through electronic money transfers that are unlikely to be recorded in the weak bank reporting systems in many poor developing countries.
For more on this article, please click on the following link: Illegal capital flight peaked during 2008 political chaos: The News
Thursday, April 30, 2009
Illegal capital flight peaked during 2008 political chaos: The News
Tuesday, April 28, 2009
General Ashfaq Kiyani: the man who calls the shots in Pakistan: Times Online
Is General Ashfaq Kiyani the most dangerous man in Pakistan? The most indecisive? Both?
The head of the Pakistan Army has done an about-turn from his quiet but shocking position that the Government’s appeasement of the Taleban in the Swat Valley was a necessary step — one that might even be the model for other confrontations inside Pakistan. His view, it has emerged in the year and a half since his appointment, is that the army was built to fight India, not Pakistanis. The Taleban, he seemed to suggest, was merely an uncomfortable phenomenon, which raised interesting, almost academic questions about how much to respect local culture. (A lot, seemed to be his answer, even if “local culture” meant the rules imposed by the Taleban).
Now, in public, Kiyani, right, has changed, apparently stung by Hillary Clinton’s denunciation of the lack of effort against the Taleban.
For more on this article, please click on the following link: General Ashfaq Kiyani: the man who calls the shots in Pakistan: Times Online
Violation of IPR likely to be made non-bailable offense: Daily Times
By Sajid Chaudhry
ISLAMABAD: The government is considering amendments in Intellectual Property Rights (IPR) regulation and is likely to make the offense of production and selling of counterfeit products as nonbailable.
The government has initiated work on preparing a legislation aiming at protecting the Intellectual Property Rights (IPR) to check piracy and counterfeiting for the healthy and sustainable growth. Speaking at a daylong moot organised by Intellectual Property Organization (IPO) Pakistan Federal Minister for Interior, Rehman Malik said that the interior ministry has been given task to prepare a draft law for protecting intellectual property rights.
The federal minister said that less attention has been paid towards protecting the intellectual property rights in the country so far. He said that the country’s talented youth choose to go abroad as they don’t feel their rights’ protected here, resulting in loss of precious intellect. He said that there was need of taking cognizance of this fact and protect any innovation for the betterment of the country.
He was of the view that the IPR has been playing a vital role in building nations, saying that China has honoured the IPR and made tremendous progress in just twenty years.
He also suggested for making a council or an NGO to protect IPR and encourage the innovation so that the young talent is encourage work in the country for the betterment of the country.
For more on this article, please click on the following link: Violation of IPR likely to be made non-bailable offense: Daily Times
Pakistan to top Halal Food exports: Kurd: Pakistan Observer
Pakistan to top Halal Food exports: Kurd
He said that a group of European Union will visit Pakistan in August and there is strong possibility that they would not only lift the restrictions but the visit will also give a boost to the fisheries sector. The visit would also help increase the exports of Pakistan. The minister said around 80% of Pakistani population depends on livestock directly but the non-technical staff in the previous government failed even to make country self sufficient.
For more on this article, please click on the following link: Pakistan to top Halal Food exports: Kurd: Pakistan Observer
Pakistan, IDB likely to finalise 3-year financial package worth $577m: Daily Times
By Ijaz Kakakhel
ISLAMABAD: Pakistan and Islamic Development Bank (IDB) are expected to finalise the modalities of three years rolling financing plan worth $577 million for the year 2010-2012 today (Tuesday), sources told Daily Times here on Monday.
In this regard the country mission of Islamic Development Bank will hold meeting with high officials of Pakistan. The meeting is likely to finalise the modalities of the financing mode and their proper implementation. The three years rolling plan includes financing of Neelum Jhelum Hydropower Project worth $360 million, NUST Development Project $57 million, Modernisation of signalling system $130 million and $30 million are for Diamer Bhasha Dam.
The sources further said that country dialogue mission of the IDB visited Pakistan in February to understand country dialogue assumed at clearly aligning the banks operation in Pakistan.
During the visit the Mission held meeting with concerned inistries/divisions/departments.
During the meeting the IDB agreed provide financing to Pakistan for National Trade Corridor in collaboration with Asian Development Bank (ADB). The IDB agreed to consider providing a loan for the Kharan and Wadhuk projects in Balochistan for an indicative amount of $15 million. The mission indicated that the bank was willing to be a part of any viable financing arrangement that desired for Diamer Bhasha Dam.
The bank informed the government that a country programming mission would visit Pakistan in second half of 2009 to firm up the projects in pipeline for the year 2010 to 2012 period and agreed on the volumes and modes of financing in live with the above understanding.
For more on this article, please click on the following link: Pakistan, IDB likely to finalise 3-year financial package worth $577m: Daily Times
Expect unexpected in Pakistan, Ukraine, Russia-Eurasia: Reuters
* 30 percent chance of military takeover in Pakistan
* 20 percent chance of social unrest, instability in Russia
* 15 percent chance of Ukraine turning to Russia
* 15 percent chance of Nigeria stability collapsing
*
By Peter Apps, Political Risk Correspondent
LONDON, April 27 (Reuters) - Pakistan, Ukraine, Russia, Nigeria and Mexico are the places where unexpected political change could have the most impact on world markets in 2009, the Eurasia Group risk consultancy said in a report on Monday.
In a special report on the world's top 10 "fat tails" -- relatively low-likelihood but potentially high-impact events -- Eurasia Group identified the chance of a military takeover in Pakistan as the most potentially significant unexpected development that might transform global geopolitics.
Other risks outlined included unrest in Russia, collapse in Nigeria and secularists lashing out in Turkey -- almost all made more likely by the impact of the global financial crisis.
"Each of these scenarios remains unlikely," Eurasia Group president Ian Bremmer said in an e-mail.
"None of them represent our "call" for any of these countries. But in each case, the impact of the global economic meltdown... has dramatically increased the likelihood of (such scenarios) occurring from 2 or 3 percent six months ago to 10 to 20 percent -- or 30 percent in the case Pakistan -- now."
For more on this article, please click on the following link: Expect unexpected in Pakistan, Ukraine, Russia-Eurasia: Reuters
Pakistan to set up atomic power plants : APP
ISLAMABAD, Apr 28 (APP): Chairman Pakistan Atomic Energy Commission Ansar Pervez said that Pakistan will set up power plants to produce 8800 Megawatt electricity.
| While talking to a private TV channel GEO he said 585 acres land has been acquired in Karachi to build four power plants. For more on this article, please click on the following link: Pakistan to set up atomic power plants : APP |
‘Gem and jewellery sector needs to be upgraded’: Daily Times
Staff Report
LAHORE: Pakistan’s gem and jewellery sector has the potential for expansion and achieving export target if it is provided with latest technology, training and supportive infrastructure.
This was the upshot of the speeches delivered at the seminar titled ‘Developing Gems and Jewellery Sector of Pakistan for the Future’ arranged by the Lahore Chamber of Commerce and Industry (LCCI) on Monday.
President LCCI Mian Muzaffar Ali, Vice President Irfan Iqbal Sheikh, Chairman Pakistan Gems and Jewellery Development Company (PGJDC) Mutti Ullah Sheikh, Standing Committee Convener LCCI Mohammad Aslam, Dean of School of Visual Arts BNU Prof Salima Hashmi, Director PGJDC Asadur Rehman Sheikh, Director TDAP Sajid Hussain, CEO Pakistan Institute of Fashion Design Ms Hina Tiyyaba and Dr Shahzad Alam of PCSIR spoke on occasion.
All the speakers were one voiced that there is a need to create awareness among the stakeholders so that the potential available in this sector could be tapped.
Enumerating the issues being faced by the gems and jewellery sector, they said that the absence of specific gem-related mining policy, obsolete mining machinery, shortage of skilled manpower, dearth of creativity, lack of global market knowledge and export methodology are hurting the entire sector in a big way.
For more on this article, please click on the following link: ‘Gem and jewellery sector needs to be upgraded’: Daily Times
Malaysia Targets US$10 Billion In Trade With Pakistan: PakTribune
KUALA LUMPUR: External Trade Development Corporation (MATRADE) of Malaysia has target US$10 billion in trade with Pakistan by 2015.
The Malaysian High Commissioner to Pakistan, Ahmad Shahizan Abd Samad said in Kuala Lumpur that as of last year, Malaysia had registered US$1.8 billion in trade with Pakistan.
The High Commissioner said that after 52 years of bilateral relations, trade between both countries is however not significant. Despite the negative perception of Pakistan due to security issues, there are still specific sectors considered to being potentially lucrative for Malaysian businesses," Ahmad Shahizan added.
He said that potential areas for Malaysian businesses to source for opportunities are, palm oil, chemicals and chemical products, electrical and electronic products, machinery and parts, processed food,textiles and clothing, natural rubber, wood products, iron, steel and metal products.
Mr. Samad Shahizan said that in 2008, Malaysia’s total exports to Pakistan stood at US$ 1.8 billion, an increase of 33.04 percent from the US$ 1.3 billion the previous year.
For more on this article, please click on the following link: Malaysia Targets US$10 Billion In Trade With Pakistan: PakTribune
Pakistan economic indicators - April 28: Reuters
Floating Interbank Rate (Rs/$) 80.46/80.51 80.45/80.52
Rupee/US $ (kerb market) 80.70/80.85 80.60/80.70
Karachi 100-share index 7,344.94 7,620.87
Gold (Karachi) Rs/10 gm 23,746 23,682
======CENTRAL BANK AUCTIONS======
Treasury Bills Auction Results:
Cut-off Yield (pct) at auction on: Apr 22 Apr 08
Three-months bills 12.9775 12.6552
Six-month bills 13,0737 12.9828
12-months bills 13,2738 13,4928
Pakistan Investment Bond (PIB) Auction Results:
Cut-off Yield (pct) at auction on: Apr 15 (2009) Feb 18 (2009)
11.25 pct coupon, three-Year PIB 12.9385 13.9530
11.50 pct coupon, five-Year PIB 12.9495 14.3692
11.75 pct coupon, seven-year PIB 13.1395 14.7973
12.00 pct coupon, 10-Year PIB 13.2409 14.9444
For more on this article, please click on the following link: Pakistan economic indicators - April 28: Reuters
Pakistan appears set on implementing 3G service this year: Telecommagazine
As mobile users exceed 91 million, two telcos announce further capex investments
| Mon. April 27, 2009 |
After market talk that began as early as two years ago, Pakistan appears set to implement 3G services in the country this year. Hafeezur Rehman, Federal Secretary for Information Technology and Telecom, was reportedly quoted this week as saying that 3G policy proposals are in the hands of the federal cabinet and spectrum auction are to be held within three or four weeks after approval has been obtained.
Besides the policy decision whether to open bidding to international players or restrict it to existing telcos, he added that the cabinet would make decisions on the base price for spectrum auction. He reiterated that the authorities are mindful of the gloomy market outlook and international recession.
As subscribers continue to grow in the country with the Pakistan Telecom Authority reporting a mobile user base exceeding 91.4 million by end February 2009 and a mobile density of 56.8 percent, incumbent telcos are girding to expand their capital expenditure programs. Based on the number of mobile subscribers, the state-of-play for telcos in Pakistan starts with five main operators: Mobilink (28.2 million subscribers), Telenor Pakistan (19.9 million subscribers), Ufone (19.6 million subscribers) Warid (17.3 million subscribers) and Zong with 5.9 million subscribers.
Telenor Pakistan and Zong to expand networks
Second-tier mobile player, Telenor Pakistan (TP) has selected Nokia Siemens Networks (NSN) to conduct its network expansion. Under the terms of the five-year contract, NSN was chosen for the network expansion and infrastructure upgrading program because TP wanted proven expertise in large scale projects with a fast time-to-market, according to Irfan Wahab, Executive Vice President, Corporate Affairs of Telenor Pakistan.
NSN will install next generation base stations that are easy to deploy, energy efficient and help to optimize network usage as well as provide training for TP’s team. Globally, NSN implemented 200,000 base stations and it activates one base station every three minutes.
For more on this article, please click on the following link: Pakistan appears set on implementing 3G service this year: Telecommagazine
Tableeghi Jamaat leaders denounce gunpoint Sharia: Dawn
By Inamullah Khattak
ISLAMABAD: In an unprecedented move, top leaders of the Tableeghi Jamaat have denounced enforcement of Sharia at gunpoint, religious extremism, militancy and terrorism.
Leaders of the Jamaat, who scrupulously avoid speaking on controversial issues, also called for promoting inter-faith harmony, tolerance, human rights, social justice and peace.
They were speaking at the conclusion of a three-day congregation near here on Monday. ‘Shariah cannot be enforced at gunpoint,’ declared Haji Abdul Wahab, Amir of the Tableeghi Jamaat, Pakistan.
Had that been the case, Allah Almighty would have sent fierce angels to protect prophets and enforce their faiths, he said.
The 90-year-old scholar, who left his job as sessions judge in pre-partition India and joined the Jamaat, cited the example of Prophet Mohammad (PBUH), said the Holy Prophet never used force. Instead he spread the word of God only by peaceful means.
Haji Abdul Wahab also condemned extremism and militancy in the name of Islam, apparently a reference to the growing trend of Talibanisation and enforcement of Shria in Swat and other areas in the NWFP.
The congregation of tens of thousands of people was also addressed by Maulana Jamshaid, Maulana Mohammad Ahmed and Mualana Fahim.
‘Muslims should preach peace, brotherhood and tolerance across the world, including Israel. They must avoid imposing their creed or faith by force because Islam is a religion of peace and promotes tranquillity,’ another scholar told the mammoth gathering.
For more on this article, please click on the following link: Tableeghi Jamaat leaders denounce gunpoint Sharia: Dawn
Sunday, April 26, 2009
Pakistan exports banking solutions: Pakistan Observer
Amanullah Khan
Karachi —Pakistan is now exporting Banking Solutions for E-Banking which is a great achievement and during past few years during which the IT & Banking sector witnessed a great progress. Saleem Rafik COO NADRA said that in Pakistan there is a Service Divide and there is a variation between services available to urban population then rural population and NADRA is striving hard to provide the same services to far flung areas and E-Banking is a way to provide latest services and Banking solutions to our villagers and peoples of remote area by E-Sahulat utility bills payment.
In fact new Technology and change is beneficial both for Banks and Customers as they are time savings said Talib Baloch Managing Director Pakistan Software Export Board while addressing 7th International E-Banking Conference and Exhibition organized by Total Communication in collaboration with Federal Ministry of IT, Pakistan Software Export Board, Pakistan Software Housing Association and Government of Sindh.
For more on this article, please click on the following link: Pakistan exports banking solutions: Pakistan Observer
Pakistan economic indicators - April 22: Forbes
Floating Interbank Rate (Rs/$) 80.53/80.60 80.52/80.60
Rupee/US $ (kerb market) 80.55/80.65 80.50/80.70
Karachi 100-share index 7,834.14 7,902.48
Gold (Karachi) Rs/10 gm 23,223 22,975
======CENTRAL BANK AUCTIONS======
Treasury Bills Auction Results:
Cut-off Yield (pct) at auction on: Apr 08 Mar 25
Three-months bills 12.6552 11.7367
Six-month bills 12,9828 11.8970
12-months bills 13,4928 11,9522
Pakistan Investment Bond (PIB) Auction Results:
Cut-off Yield (pct) at auction on: Apr 15 (2009) Feb 18 (2009)
11.25 pct coupon, three-Year PIB 12.9385 13.9530
11.50 pct coupon, five-Year PIB 12.9495 14.3692
11.75 pct coupon, seven-year PIB 13.1395 14.7973
12.00 pct coupon, 10-Year PIB 13.2409 14.9444
12.50 pct coupon, 15-Year PIB 13.8007 15.4995
13.00 pct coupon, 20-Year PIB 14.2492 15.8998
13.75 Pct coupon, 30-Year PIB 14.4995 16.4496
======WEEKLY INDICATORS======
Week ending April 11 April 04
Total liquid frx reserves $11.229 bln $11.17 bln
Forex held by central bank $ 7.865 bln $ 7.80 bln
Forex held by other banks $ 3.364 bln $ 3.37 bln
For more on this article, please click on the following link: Pakistan economic indicators - April 22: Forbes
Saturday, April 25, 2009
Germany to provide 115 million Euros aid to Pakistan: APP
ISLAMABAD, Apr 21 (APP): Germany will provide project-specific aid to the tune of 115 million euro to Pakistan for next two years. These funds will mainly be used for education, health, energy supply and support to refugees and internally displaced persons.
The aid was announced by Ambassador Bernd Mutzelburg, Germany’s Special Representative for Afghanistan and Pakistan and head of the German delegation at the Donors Conference held in Tokyo on April 17, says a press release issued here on Tuesday.
For more on this article, please click on the following link: Germany to provide 115 million Euros aid to Pakistan: APP
An Arab country that saved the day for Pakistan: Gulf Times
Internews/Islamabad
An international conspiracy to split Pakistan into two zones by turning them into two separate geographic units was foiled by a brotherly Arab Muslim country in Dubai a week before the Friends of Pakistan meeting in Tokyo last week, a report said yesterday.
A plan to set up so-called “Trust Fund” was drawn up for provision of “special aid” for the provinces of Balochistan and the Frontier with huge amount of international assistance separately meant to disconnect them from rest of the country.
The idea had, however, been widely accepted by senior officials in Pakistan and even some high ups in Islamabad considered it a ‘lucrative’ and ‘harmless proposition’.
Sources revealed some Western countries campaigned to formalise the idea acceptable to all the participants of the Dubai meeting.
In this regard, several calls were made from Abu Dhabi to different capitals of the world to get an approval but the country in question, which enjoys tremendous esteem in the Muslim world and has a leading role for the Muslim Ummah, came in the way of the proposal.
This country delayed announcing its contribution for the Tokyo meeting. The country in question threatened that if the West continued to press for the proposal it would publicly announce its opposition to the idea and may stay away from the forum, the sources said.
This leading Muslim country was of the view that once the Trust Fund was established it would be used as conduit for the dismemberment of Pakistan.
The diplomats expressed apprehension about Pakistan’s interests and said once the Trust Fund became effective, the United Nations would be subsequently asked to come forward to play its role for the region to the detriment of Pakistan.
It was feared that in a calculated step, international financial institutions would contribute billions of dollars in the name of rehabilitation of those areas. Later, they would have asked the world body to come forward to play its role to save their huge investment there.
In this way action by the interested world powers would have the mandate of the United Nations to give it the cover of legitimacy.
This could have cut Pakistan down to size on the one hand, and paved the way for the creation of a buffer state between Pakistan and Afghanistan on the other. Most of the bordering countries of Pakistan would have supported such a division.
For more on this article, please click on the following link: An Arab country that saved the day for Pakistan: Gulf Times
Monday, April 20, 2009
Pakistan economic indicators - April 20: Forbes
Floating Interbank Rate (Rs/$) 80.30/80.38 80.42/80.47
Rupee/US $ (kerb market) 80.50/80.70 80.70/80.90
Karachi 100-share index 7,794.95 7,670.08
Gold (Karachi) Rs/10 gm 22,930 23,971
======CENTRAL BANK AUCTIONS======
Treasury Bills Auction Results:
Cut-off Yield (pct) at auction on: Apr 08 Mar 25
Three-months bills 12.6552 11.7367
Six-month bills 12,9828 11.8970
12-months bills 13,4928 11,9522
Pakistan Investment Bond (PIB) Auction Results:
Cut-off Yield (pct) at auction on: Apr 15 (2009) Feb 18 (2009)
11.25 pct coupon, three-Year PIB 12.9385 13.9530
11.50 pct coupon, five-Year PIB 12.9495 14.3692
11.75 pct coupon, seven-year PIB 13.1395 14.7973
12.00 pct coupon, 10-Year PIB 13.2409 14.9444
12.50 pct coupon, 15-Year PIB 13.8007 15.4995
13.00 pct coupon, 20-Year PIB 14.2492 15.8998
13.75 Pct coupon, 30-Year PIB 14.4995 16.4496
======WEEKLY INDICATORS======
Week ending April 11 April 04
Total liquid frx reserves $11.229 bln $11.17 bln
Forex held by central bank $ 7.865 bln $ 7.80 bln
Forex held by other banks $ 3.364 bln $ 3.37 bln
For more on this article, please click on the following link: Pakistan economic indicators - April 20: Forbes
Pakistan to launch 3G cellular service: The Peninsula
Source ::: Internews
ISLAMABAD: The next generation cellular services, commonly known as 3G, will be launched in Pakistan this year, an official said yesterday. Federal Secretary for Information Technology and Telecom Hafeezur Rehman said the policy for launching these services has already been submitted to the federal cabinet and after its approval within three to four weeks spectrum will be auctioned.
He said despite the global recession and a worrying security situation the government wants the 3G services to be available for the Pakistani cellular customers.
He said the base price for auction of the spectrum will be decided by the cabinet besides the policy decision whether the existing operators only will be allowed to participate or more international companies will be invited. “The; ministry has also submitted its recommendations op these matters; but the final decision rests with the federal cabinet,” he added.
For more on this article, please click on the following link: Pakistan to launch 3G cellular service: The Peninsula
Pakistan offers farmland to foreign investors: Reuters
By Amena Bakr
DUBAI (Reuters) - Pakistan is offering one million acres of farmland, protected by a special security force, for lease or sale to countries seeking to secure their food supplies, an official from the ministry of finance said on Monday.
Gulf Arab countries, mainly reliant on food imports, have been seeking farmland in developing nations to secure supplies and have expressed interest in Pakistan's offer.
Donors including the United States, Japan, Europe, Saudi Ararbia and Iran pledged more than $5 billion in aid over two years at a conference in Japan this month to help Pakistan as it battles militants and repair its economy.
"We are offering one million acres of land across Pakistan for investors who want to buy or lease the land for a long period of time," said Waqar Ahmed Khan, the Federal Minister of Investment in Pakistan.
For more on this article, please click on the following link: Pakistan offers farmland to foreign investors: Reuters
Pakistan Cuts Key Interest Rate to Spur Growth: WSJ
By HARIS ZAMIR and NEELABH CHATURVEDI
KARACHI -- Pakistan's central bank Monday trimmed its key interest rate for the first time in more than six years to boost an economy battered by internal strife and a global downturn.
The State Bank of Pakistan cut the discount rate by 1 percentage point to 14%. The cut is effective Tuesday, Governor Syed Salim Raza told reporters at a news briefing.
"The falling inflation rate and the projection that it will come down before the end of the current fiscal (financial) year gave room for the rate cut," Mr. Raza said.
Nine out of 11 economists polled by Dow Jones Newswires had expected the central bank to cut rates at the policy meeting. The remaining two had expected rates to remain unchanged.
The monetary easing marks a turnaround by the central bank, which raised interest rates by 5 percentage points in 2008 in a bid to cool the then-rising inflation, and suggests its policy priority is now on spurring South Asia's second-largest economy.
Headline inflation remains high but is now less of a threat to the economy, having eased to 19.1% in March from a multi-decade high of 25.3% in August due to a sharp fall in commodity prices. The economy is poised to grow at its slowest pace in eight years in the financial year through June.
For more on this article, please click on the following link: Pakistan Cuts Key Interest Rate to Spur Growth: WSJ
$1.5bn US aid conditions compromise sovereignty: The News
By Mansoor Ahmad
LAHORE: Economists, entrepreneurs and civil society are perturbed by the strings attached with $1.5 billion yearly US aid package for Pakistan that infringe on its sovereignty. They have urged the government not to compromise its dignity and adopt austerity instead.
They point out that the common man is unaware of the most insulting comments of the US public about Pakistan’s protest against the strings attached to the aid package proposed by the United States. The US public in comments carried on the media said things like beggars can't be choosers, if Pakistan does not like the conditions refuse the money, etc.
They point out that $1.5 billion looks big amount as the rulers and the nation even in present testing times are still indulged in unnecessary spending based on imported goods. They said that it is high time that the government take steps to curb all unnecessary imports and expenditures where foreign exchange is involved.
Leading engineering entrepreneur Almas Hyder said that once a country accepts unreasonable conditions for economic aid there is no end to the donors’ demands. He said economic aid could be linked to improvement of governance, equitable taxation but it could not be bracketed with political performance the parameters of which compromise the sovereignty of the country.
He said the country should go forth with stopping unnecessary imports. He said it looks criminal to import $26 million worth of dog food when human beings are starving in the country. He said Pakistan has highest per capita edible oil consumption in the world that should be curbed to bare minimum by duties on edible oil. He said there is no need to import chocolates, candies, processed juices, cosmetics, and luxury cars that could save more than $1.5 billion import bill. He said these measures would impact only 5 per cent of the privileged class of the country.
Senior economist Naveed Anwar Khan FCA said If Pakistan accepts strings attached with US aid package it would be at the mercy of the United States that would determine whether we have taken the steps according to its vision and satisfaction. He said the aid would always be uncertain and create more uncertainty in the economy than now.
For more on this article, please click on the following link: $1.5bn US aid conditions compromise sovereignty: The News
Saturday, April 18, 2009
Pakistan economic indicators - April 17: Forbes
Floating Interbank Rate (Rs/$) 80.40/80.48 80.52/80.58
Rupee/US $ (kerb market) 80.85/80.95 80.80/80.90
Karachi 100-share index 7,670.08 7,807.08
Gold (Karachi) Rs/10 gm 23,334 23,446
======CENTRAL BANK AUCTIONS======
Treasury Bills Auction Results:
Cut-off Yield (pct) at auction on: Apr 08 Mar 25
Three-months bills 12.6552 11.7367
Six-month bills 12,9828 11.8970
12-months bills 13,4928 11,9522
Pakistan Investment Bond (PIB) Auction Results:
Cut-off Yield (pct) at auction on: Apr 15 (2009) Feb 18 (2009)
11.25 pct coupon, three-Year PIB 12.9385 13.9530
11.50 pct coupon, five-Year PIB 12.9495 14.3692
11.75 pct coupon, seven-year PIB 13.1395 14.7973
12.00 pct coupon, 10-Year PIB 13.2409 14.9444
12.50 pct coupon, 15-Year PIB 13.8007 15.4995
13.00 pct coupon, 20-Year PIB 14.2492 15.8998
For more on this article, please click on the following link: Pakistan economic indicators - April 17: Forbes
Pakistan may become leading dairy producer by 2020: The News
KARACHI: Pakistan, having a vast potential in dairy production, is gaining momentum to emerge as an important player in the sector and lead the world by 2020.
Engro Foods Pakistan Chairman Asad Umer stated this while speaking on “The Dairy Business” at a forum organised by the Food Association of Pakistan the other day.
Asad said Engro Foods was projected to be the biggest business of Engro Company in the next five years.
Commenting on the challenges faced by the local dairy sector, he said existing knowledge gap, scattered animal holdings, poor milk collection infrastructure and legal framework on land availability were some of the main hurdles in the way of developing dairy farming in the country.
For more on this article, please click on the following link: Pakistan may become leading dairy producer by 2020: The News
Pakistan and Britain The immigration superhighway: Economist
IT IS midnight outside Mecca, and a crowd has gathered to pay homage. Their devotion is intense, but not religious: the “Mecca” in question is a bingo hall in Bradford, and the god being worshipped by a group of young, white Bradfordians appears to be alcohol. Nearby, in one of the city’s Pakistani neighbourhoods, pubs have shut for lack of custom. Only a few streets away, it seems a continent apart.
One reason why shop signs on the streets of Bradford are still written in Urdu, half a century after the first Pakistanis came to Britain, is that population flows between the two countries remain large (see chart). Each year 250,000 Pakistanis come to Britain to visit, work or marry, and some 350,000 British citizens journey in the opposite direction, mainly to visit family. Links are reinforced by ingrained marriage customs: six of ten ethnic Pakistanis in Britain pick a spouse from Pakistan.
Those busy borders have been a boon in various ways. British universities rake in around £10,000 ($15,000) per person from their share of the 10,000 or so Pakistanis admitted each year on student visas, and businesses sponsor a couple of thousand Pakistani workers a year to plug gaps in the labour market. But the easy comings and goings between Britain and “the most dangerous place in the world”, as President Barack Obama recently dubbed Pakistan’s western regions, is causing concern. On April 8th British police arrested 12 men on suspicion of involvement in what officers say was a “very, very big” terrorist plot. Ten were Pakistani citizens on student visas.
For more on this article, please click on the following link: Pakistan and Britain The immigration superhighway: Economist
Friday, April 17, 2009
Pakistan Gets $5.28 Billion for Economy, Security: Bloomberg
By Stuart Biggs and Takashi Hirokawa
April 17 (Bloomberg) -- Pakistan won pledges for $5.28 billion in aid from more than 20 countries to help shore up an ailing economy and combat al-Qaeda and Taliban militants along its border with Afghanistan.
“Today’s commitment will enhance Pakistan’s capacity to fight terrorism and give us an ability to strengthen civic institutions that have weakened over the years,” Pakistani Foreign Minister Shah Mahmood Qureshi said after a donor conference in Tokyo today. “We will use force whenever required but we have to reach out to the people, give them development and cater to their social needs.”
While the aid is welcome, “it all boils down to how effectively the government is going to spend it,” said Habib ur-Rehman, chief executive officer of Atlas Asset Management in Karachi. The year-old civilian government led by President Asif Ali Zardari has “not been very effective so far” in solving problems of weak governance and a slumping economy, he said, noting it has been embroiled in months of political infighting.
“This government is not clean,” said Syed Adil Gilani, chairman of the Pakistan chapter of Transparency International, an anti-corruption lobby group. “We want to see what conditions and monitoring the donors will apply to ensure that the money is used for the purpose given.” Transparency International’s annual index lists Pakistan as the 46th most corrupt country of 180 surveyed.
‘Crucial Moment’
The funds, to be spread over two years, will help the South Asian nation at a “crucial moment,” Japan’s Prime Minister Taro Aso said. Donor nations ranging from the U.S. to Iran, Saudi Arabia and China also reaffirmed commitments of more than $15 billion for projects to reduce poverty and boost growth.
For more on this article, please click on the following link: Pakistan Gets $5.28 Billion for Economy, Security: Bloomberg
Aid For Pakistan Tops $5 Billion: Forbes
Chana R. Schoenberger, 04.17.09, 11:20 AM EDT
Rich countries bet pledges will help stave off extremism, terror.
TOKYO -- Pakistani president Asif Ali Zardari knows about political instability in his country; his wife, Benazir Bhutto, Pakistan's former leader, was assassinated in 2007. So when he flew here to convince the world's donor countries to write him as large a check as possible to fight extremism and poverty in Pakistan, he had some standing.The world responded Friday with pledges of $5.28 billion in aid over the next two years. The U.S. and Japan each promised $1 billion, while Saudi Arabia agreed to give $700 million, with other countries and organizations making up the balance. The money will arrive in the form of grants and low-interest loans.
For more on this article, please click on the following link: Aid For Pakistan Tops $5 Billion: Forbes
Pakistan earns $394m more from rice export: The Nation
By: Ramzan Chandio | Published: April 17, 2009
KARACHI - Pakistan earned $394 million more from the export of the rice during nine months (July-March) of the current financial year 2008-09.
The total export of rice increased to $1.339 billion in nine months of current fiscal year 08-09 against $945m of same period of last fiscal year 07-08. Rice is the dominated food staple in exportable food commodity and it has importance in the exports commodities as country earns significant foreign exchange every year. Though, the export of the rice has increased during nine months over same period of last year as history making prices of the commodity in international as well as in local market had encouraged the growers who switched over to rice even in cotton growing-areas.
Due to attracting prices, the growers and exporters were eying of over 6m tons production in current crop season of FY2008-09 but emergent fall of rain had badly impacted on production and yield of the crop in the country. Resultantly, the output of the crop reduced to 5.6m tons in current season of FY2008-09.
For more on this article, please click on the following link: Pakistan earns $394m more from rice export: The Nation
Foreign investment in Pakistan down 36 pct July-March: Reuters
KARACHI, April 15 (Reuters) - Net foreign investment in Pakistan fell 35.9 percent to $2.08 billion in the first nine months of the 2008/09 fiscal year compared with $3.25 billion in the same period last year, the central bank said on Wednesday.
Foreign private investment fell 19.5 percent to $2.62 billion in the July to March period, compared with $3.26 billion the previous year, the State Bank of Pakistan said.
Out of total foreign investment, foreign direct investment was down 8 percent to $3.04 billion, compared with $3.31 billion in the year-earlier period.
There was an outflow of $957.5 million from July to March this year compared with an outflow of $53.1 million in the same period last year.
For more on this article, please click on the following link: Foreign investment in Pakistan down 36 pct July-March: Reuters
Pakistan's forex reserves rise to $11.22 bln: Reuters
KARACHI, April 16 (Reuters) - Pakistan's foreign exchange reserves rose by $50 million to $11.22 billion in the week ended April 11, the central bank said on Thursday.
The State Bank of Pakistan's reserves rose to $7.86 billion from $7.80 billion a week earlier while reserves held by commercial banks marginally fell to $3.36 billion from $3.37 billion, the bank said.
Pakistan recently received $500 million from the World Bank and $848 million from the International Monetary Fund, which was reflected in the data last week.
For more on this article, please click on the following link: Pakistan's forex reserves rise to $11.22 bln: Reuters
Tuesday, April 14, 2009
India more corrupt than Pakistan: Report: UTVi
That India is a corrupt nation is not big news but that it is the 4th most corrupt country out of 47 other Asian countries comes as a shocker. Its just slightly better than Indonesia, Thailand, Cambodia.
In a recent survey conducted by Political and Economic Risk Consultancy (PERC), India, scored of 7.21 on the corruption index making it the fourth most corrupt nation in Asia.
Stringent laws that make business transactions difficult are one of main reasons why India finds itself at the top of the list. This could prove as a serious deterrent at a time when India is producing a generation of professionals and companies are on a shopping spree around the world.
Unethical practices, red tape and bureaucracy in government organisations were instrumental in adding that stigma to Indias growing economy. Corruption has rocked the Indian system for years and out politicos do little to fight it off.
For more on this article, please click on the following link: India more corrupt than Pakistan: Report: UTVi
Monday, April 13, 2009
Record remittances signal disaster: govt: The News
By Saad Hasan
KARACHI: A 23 per cent increase in remittances sent home by overseas Pakistanis during last month could actually be a sign of increasing joblessness amid a global economic recession, top government officials warned.
The State Bank of Pakistan (SBP) on Saturday reported that remittances had shot up to $739.43 million in March 2009 compared to $602.21m recorded in the same month of previous year.
“This could lead to a tsunami of jobless people approaching us,” Farooq Sattar, Federal Minister for Overseas Pakistanis, told The News. “It seems people who have lost work abroad are moving their capital back home.”
Even though, he said, there were no indications of any large number of expatriates returning but his ministry had already alerted the authorities about a possible ‘storm’. “I have written to Foreign Minister Shah Mehmood Qureshi to apprise him in this regard.”
In its second quarterly economic review report, the SBP has also cautioned the government against too much reliance on remittances to meet the current account deficit.
Finance Adviser Shaukat Tarin was also skeptical about the record increase in remittances during a single month. “I fear these numbers indicate that people who have lost their jobs abroad might be transferring their belongings back to Pakistan,” he told newsmen earlier in the day.
During July-March 2008-09, remittances swelled to $5.65 billion from $4.7bn in the same period of previous year. Highest amount of $1.29 billion was received from the US, the global powerhouse where hundreds of thousands of people have been sacked in the past few months.
For more on this article, please click on the following link: Record remittances signal disaster: govt: The News
Country’s first wind farm to be opened by month-end: The News
ISLAMABAD: Renewable energy technologies would be an essential element in Pakistan’s energy future making major contributions to the diversity and security of energy supply and to economic development, said Water and Power Federal Minister and Alternative Energy Development Board (AEDB) Chairman Raja Pervez Ashraf on Saturday.
He was speaking to the media after a briefing at the AEDB headquarters in connection with the inauguration of the country’s first wind farm planned for later this month. The federal minister reiterated the government’s commitment to ending load-shedding by December 31.
Ashraf said the inauguration of the first wind farm would be a landmark in the renewable energy sector as the government pursues the objective of a clean and competitive energy future for the country.
The wind farm established by the Turkish Firm Zorlu Enerji has a six-megawatt installed capacity in the first phase. Five turbines have been installed, each with a capacity to generate some 149,137 kwh of electricity.
The power generated in the first phase would be supplied to the Jhimpir grid station by the Hyderabad Electric Supply Company for electrifying 7,400 homes. The project will produce sufficient electricity to do away with the production of approximately 10,500 tons of carbon dioxide each year, compared to a conventional fossil fuel power project. The farm would be later expanded in the second phase to generate 50MW of electricity.
For more on this article, please click on the following link: Country’s first wind farm to be opened by month-end: The News
Chinese Foreign Reserves and Reserve Diversification: The News
BEIJING: China’s forex reserves, the largest in the world, fell to 1.9121 trillion dollars at the end of February, from 1.9135 trillion a month earlier, the central bank announced on Saturday.
At the end of March, the country’s forex reserves rose to 1.9537 trillion dollars, up from 1.946 trillion in December, the bank said on its Internet site.
China has invested most of its vast reserves in US dollars, such as safe but low-yielding US Treasury bonds, but has tried to diversify its investments to improve its returns.
There are differing interpretations over the variations in the Asian giant’s reserves.
Agricultural Bank of China economist He Zhicheng recently estimated Chinese losses at 80 billion dollars between August and February due to falling stock markets and exchange rate fluctuations.
Some say one of the reasons for the fall could be a massive capital outflow, pointing out that the movement in the reserves is lower than that in the trade surplus and direct foreign investment.
For more on this article, please click on the following link: Chinese Foreign Reserves and Reserve Diversification: The News
Saturday, April 11, 2009
Pakistan gets Rs50m export orders for hunting arms: The News
Saturday, April 11, 2009
By By our correspondent
PESHAWAR: After successfully displaying arms during an international exhibition, the Pakistan Hunting and Sporting Arms Development Company (PHSADC) has got export orders worth around Rs50 million.
Talking to The News, PHSADC Chairman Nauman Wazir informed they had received orders from 11 international companies for around 5,000 guns and pistols. The development came after the company displayed arms at international exhibition IWA held in Germany in March.
“We had made arrangements for display of guns produced by Pakistani artisans in the exhibition and got a positive response,” Wazir said, adding in the three-day fair, which was the second biggest in the world after Shot Show in Florida (US), about 25 to 30 companies showed interest in the products.
He went on to say 11 companies had placed orders for purchase of 5,000 to 6,000 guns and pistols manufactured by gunsmiths of Peshawar and Darra Adam Khel arms cluster. Negotiations, he added, with some other companies were still continuing and more orders may be received.
For more on this article, please click on the following link: Pakistan gets Rs50m export orders for hunting arms: The News
Japan to give Pakistan $1 bln in aid: Nikkei: Washington Time
TOKYO (Reuters) - Japan's government is finalizing plans to provide Pakistan with up to $1 billion in economic aid over the next two years, the Nikkei business daily reported Saturday.
The assistance would consist of yen loans and grant aid, and is aimed at helping poverty-stricken areas that could become breeding grounds for extremists, as well as finance infrastructure, education and job training, the Nikkei said.
Japan will announce the details on April 17 at a Pakistan donors conference in Tokyo that it is co-hosting with the World Bank, the paper said.
Pakistan has said it is seeking between $4 billion to $6 billion in aid pledges at the donors conference to fill a financing gap over the next two years.
For more on this article, please click on the following link: Japan to give Pakistan $1 bln in aid: Nikkei: Washington Time
Pakistan displays defiance in Washington: Pakistani Newspaper
WASHINGTON, Apr 11: Pakistan’s new found defiance against the United States was on full display in Washington on Thursday evening when Ambassador Husain Haqqani urged Americans not to attach ‘intrusive’ conditions to the aid they offer.
‘Once again there’s talk of fixing Afghanistan and Pakistan. Please do not fix us,’ said the ambassador in a joint appearance with his Afghan counterpart at a Washington think-tank, the Atlantic Council.
‘The world is not a problem for America to fix. The world is a place for the Americans to understand.’
He also defended the Inter-Services Intelligence Agency (ISI), an institution seen by civilian quarters in Islamabad as too intrusive and too politicized.
‘It is important that the institutions that are to be partners in this (anti-terrorism) effort do not start feeling under attack, whether it is ISI or the Pakistani military,’ he said.
‘Mistakes have been committed on all sides. But this lack of trust will be addressed by talking to us, not by beating down on us.’
Mr Haqqani said that the Pakistanis these days were very concerned about an ‘unbridled indictment’ of their security services, giving no credit to Pakistan for the efforts that have been made.
‘We lost a lot of people along the border with Afghanistan. We have become a major victim of terrorism. More Pakistanis have died as a result of terrorist incidents in the last two years than in any other country.’
Diplomatic observers noted that Pakistan’s new defiant posture is not an instant flare up of sentiments on the part of the Pakistani leaders.
The change of mood followed a collective decision of the government and the security establishment to adopt a tough posture.
No blank cheques
When President Barack Obama announced his new strategy for Pakistan and Afghanistan late last month, telling Islamabad not to expect blank cheques from Washington, Ambassador Haqqani welcomed it as a step in the right direction.
He said Washington had consulted closely with Islamabad on formulating the policy and it was not formed in the clouds.
But on Thursday, he appeared offended with President Obama’s reprimand that the US will no more write blank cheques. ‘We will not accept a blank cheque, nor would we write any,’ said the Pakistani envoy.
For more on this article, please click on the following link: Pakistan displays defiance in Washington: Pakistani Newspaper
Friday, April 10, 2009
Pakistan’s Trade Deficit Narrows 49.2% as Imports Decline: Bloomberg
By Farhan Sharif
April 10 (Bloomberg) -- Pakistan’s trade deficit narrowed by 49.2 percent in March as imports fell faster than exports.
The trade gap fell to $1.04 billion in the ninth month of the fiscal year ending June 30, from $2.05 billion a year earlier, according to data posted on the Web site of the Federal Bureau of Statistics in Islamabad.
Overseas sales fell 25.9 percent to $1.3 billion, while imports fell 38.4 percent to $2.4 billion, according to the data.
For more on this article, please click on the following link: Pakistan’s Trade Deficit Narrows 49.2% as Imports Decline: Bloomberg
Thursday, April 9, 2009
Pakistan economic indicators - April 9: Reuters
WEDNESDAY PREVIOUS
Floating Interbank Rate (Rs/$) 80.60/80.67 80.53/80.59
Rupee/US $ (kerb market) 80.60/80.75 80.55/80.65
Karachi 100-share index 7,340.30 7,635.88
Gold (Karachi) Rs/10 gm 23,437 23,232
======CENTRAL BANK AUCTIONS======
Treasury Bills Auction Results:
Cut-off Yield (pct) at auction on: Mar 25 Mar 11
Three-months bills 11.7367 11.6908
Six-month bills 11,8970 11.7845
12-months bills 11,9522 11,8518
Pakistan Investment Bond (PIB) Auction Results:
Cut-off Yield (pct) at auction on: Feb 18 (2009) Aug 29 (2008)
11.25 pct coupon, three-Year PIB 13.9530 13.6973
11.50 pct coupon, five-Year PIB 14.3692 B/Rejected
11.75 pct coupon, seven-year PIB 14.7973 14.3398
12.00 pct coupon, 10-Year PIB 14.9444 14.5493
12.50 pct coupon, 15-Year PIB 15.4995 14.7500
13.00 pct coupon, 20-Year PIB 15.8998 No B/Received
13.75 Pct coupon, 30-Year PIB 16.4496 14.9384
======WEEKLY INDICATORS======
Week ending Mar 28 Mar 21
Total liquid frx reserves $10.090 bln $10.257 bln
Forex held by central bank $ 6.634 bln $ 6.791 bln
Forex held by other banks $ 3.456 bln $ 3.466 bln
======MONTHLY INDICATORS======
LAST PVS
Consumer price index Feb 191.90 190.09
Change mth/mth (pct) Feb -0.59 -0.42
Change Yr/Yr (pct) Feb 21.07 20.52
Wholesale price index Feb 194.19 192.91
Change mth/mth (pct) Feb n/a n/a
Change Yr/Yr (pct) Feb 15.03 15.69
Trade Balance Feb $-857 mln $-1.17 bln
Exports Feb $ 1.26 bln $ 1.36 bln
Imports Feb $ 2.12 bln $ 2.53 bln
======ANNUAL INDICATORS======
FISCAL YEAR 2007/08 2006/07
Population (millions) **160.9 156.77
Per capita income **$1085 $925
For more on this article, please click on the following link: Pakistan economic indicators - April 9: Reuters
Malaysia, Ireland and Scotland among Pakistan's offshore options: Cricinfo
Alex Brown
April 9, 2009
Malaysia, Ireland and Scotland have emerged as surprise contenders to host future Pakistan "home" series. Ijaz Butt, the chairman of the Pakistan Cricket Board, confirmed that those nations, along with England and the United Arab Emirates, could become the Pakistan team's foreign base while the domestic security risk remained high.
While stressing his desire for cricket to make a prompt return to Pakistan, Butt said his board would announce in the next month neutral venues for impending international series. Butt has already held discussions with Giles Clarke, chairman of the ECB, regarding the feasibility of England hosting next year's Test series between Pakistan and Australia, and will soon decide where other matches will be based.
"We have a number of alternatives before us, and we are investigating their suitability as host venues," Butt told Cricinfo. "We have spoken with the ECB, and we will speak again with Giles Clarke when we all get together for the next ICC meeting in Dubai. There are other alternatives too. Kuala Lumpur, Ireland and Glasgow are among those. Nothing has been finalised at this stage but we will hope to make a decision in the next month."
For more on this article, please click on the following link: Malaysia, Ireland and Scotland among Pakistan's offshore options: Cricinfo
Cement sales down 17pc in nine months: The News
KARACHI: Local cement sales in the first nine months (July to March) of the fiscal year 2008-09 have dropped by 17 per cent to 13.9 million tons.
However, exports have continued to grow, rising by 52 per cent to 7.9 million tons despite the fact that the pace of growth in exports has slowed down in the recent months.
JS Research reported on Tuesday that according to the latest provisional numbers overall cement sales were down 0.4 per cent to 21.8 million tons.
For more on this article, please click on the following link: Cement sales down 17pc in nine months: The News
Govt to bag Rs26.7bn tax on POL products: The News
By Dilshad Azeem
ISLAMABAD: The federal government is all set to earn Rs26.695 billion on petroleum products in the current month with each Pakistani carrying the burden of almost Rs6 per day in shape of indirect taxes on POL products, The News has learnt.
According to officials, the government will collect Rs18.6bn Petroleum Development Levy (PDL) and Rs8bn General Sales Tax (GST) by maintaining the prices of petroleum product for the current month.
At the same time, former acting chief justice (Retd) Rana Baghwandas is heading a commission constituted by Chief Justice Iftikhar Muhammad Chaudhry which will take up the case of petrol prices challenged before the Supreme Court.
Officials at the Ministry of Petroleum disclosed to The News that the oil companies’ commission plus freight charges are expected to be Rs4.263bn thus making, along with government’s earnings, a total of Rs30.95bn or 52.4 per cent of the total spending in April.
Additional Secretary Ministry of Petroleum and Natural Resources G A Sabri, when contacted for comments, confirmed that the petroleum levy alone is estimated to be around Rs18bn in the current month.
Sabri maintained that Pakistan’s import bill stands at almost US$ 500 million or roughly Rs40 billion a month. However he said he does not have detailed figures. Interestingly, the actual crude oil amount stands at Rs28.113b or 47 per cent whereas the state taxes and commission & freight are Rs30.959b or 52.4 per cent of the petroleum products price at pumps, reveals the officially notified figures.
Beginning from crude to final product at filling station the 160 million population of Pakistan contributes Rs166.84 every month (Rs5.56 every day) in form of taxes, PDL and GST.Likewise, a citizen pays Rs369.20 per month or Rs12.306 per day in shape of indirect taxes on petroleum products from import stage to market.
For more on this article, please click on the following link: Govt to bag Rs26.7bn tax on POL products: The News
Pakistan defence budget in last 5 years seen declining: The News
ISLAMABAD: Pakistan defence budget expenditures during the last five years is seen on the decline.
Available government data show that a sum of Rs194 billion was allocated from a total budget outlay of Rs902 billion in 2004-05, while in 2008-09 out of total budget outlay of Rs210 billion, a sum of Rs296 billion was allocated for defence. During the last five years, the defence budget ratio to government expenditures declined by 7 percent, as it worked out to only 15 percent declining from 22 percent of the total expenditures.
Former Finance Advisor, Dr. Salman Shah said that the cut in defence expenditures aimed at more cost-effective utilization of the fund. He said that the defence budget didn’t include armed forces retired employees pension funds, as it was not part of the defence budget.
For more on this article, please click on the following link: Pakistan defence budget in last 5 years seen declining: The News
The dollar as a reserve currency Handle with care: Economist
China suggests an end to the dollar era
IN FUTURE, changes to the international financial system are likely to be shaped by Beijing as well as Washington. That is the message of an article by Zhou Xiaochuan, the governor of the People’s Bank of China. Mr Zhou calls for a radical reform of the international monetary system in which the dollar would be replaced as the main reserve currency by a global currency. It is a delicate issue, however. When Tim Geithner, America’s treasury secretary, discussed the proposal in New York on March 25th, his remarks sent the dollar tumbling before he made clear that, naturally, he thought the greenback should remain the dominant reserve currency.Mr Zhou’s proposal is China’s way of making clear that it is worried that the Fed’s response to the crisis—printing loads of money—will hurt the dollar and hence the value of China’s huge foreign reserves, of which around two-thirds are in dollars.
He suggests that the international financial system, which is based on a single currency (he does not actually cite the dollar), has two main flaws. First, the reserve-currency status of the dollar helped to create global imbalances. Surplus countries have little choice but to place most of their spare funds in the reserve currency since it is used to settle trade and has the most liquid bond market. But this allowed America’s borrowing binge and housing bubble to persist for longer than it otherwise would have.
For more on this article, please click on the following link: The dollar as a reserve currency Handle with care: Economist
BD remittances higher than Pakistan’s: The News
By Mansoor Ahmad
LAHORE: Worker remittances, which account for 4.2 per cent of the gross domestic product, are increasing, but are still low when compared with Bangladesh having less qualified low-wage workers around the world.
In Pakistan, remittances have increased almost seven-fold from $1.075 billion at the start of the century in 2000 to $7.025 billion in 2008 and are rising even when global recession is impacting remittances in some countries. According to recent data, Bangladeshis working outside their country sent home over $9 billion, 20 per cent higher than Pakistan.
Despite the increase in remittances, the money received through legal banking channels, the unofficial ‘hundi’ business is thriving in Pakistan. Operators of that illegal business have changed the way they conduct it. In some cases, they receive money from the expatriates in the host country and give them a code number. Their sub-office in Pakistan makes payment to the recipient on disclosure of the code number. As an additional safeguard, a copy of the identity card of the recipient is also obtained before making the payment.
Some of the operators are more cautious. They phone the recipient and inform him that they would deliver the money at home and ask him to keep a photo copy of his identity card. They never visit the recipient house at the scheduled time and date and go later and deliver the money.
The authorities, however, have adopted a lax attitude towards hundi operators. The business is on the rise as expatriate workers seem to have more confidence in hundi operators than the official channels which also charge less.
For more on this article, please click on the following link: BD remittances higher than Pakistan’s: The News
Sunday, April 5, 2009
Pakistani Media Needs to be Tamed
Pakistani media needs to be much more mature when it comes to displaying images to a nationwide audience which carries no real substance whatsoever. The showing of a grainy video clip supposedly showing Taliban carrying out a sentence on a woman in Swat serves nobody, especially in Pakistan. The incessant ranting of the media needs to be censured. It seemed to me the clip came straight out of Hollywood studios designed to brainwash the Pakistani nation after the speech of the American President Barrack Obama, where he wants to put Pakistan in the same category as Afghanistan and wants Pakistan to descend into chaos so that the US has an excuse to further infiltrate into Pakistani territory. I would discuss first the religious aspect of the punishment meted out to the woman and then what the US wants to accomplish from mass viewership of such clips.
Religiously speaking, punishments have been carried out publicly in countries and territories which adhere to the Shariah law and such a sight is not so uncommon in those countries. Countries such as Saudi Arabia regularly carry out public decapitations and flogging of criminals after the due process of law has been given its course. The public display of these is designed to serve as an example for all to observe and acts as a deterrent to such crimes. One of my acquaintances, who lives in Saudi Arabia once narrated a detailed account of one such floggings when he was visiting a small town in the country. There he saw a man being whipped for a crime he had committed according to the Shariah law. Many local town people were present to witness the event. Usually, the judge who announces the verdict is not present in the ceremony. But this time he was present himself when the punishment was being given so that the whip floggers do not show any leniency/mercy in meting out the sentence and it serves as a real example for all to see. Testament to the heinous crime he had committed. Two floggers on each side whipped the person one after another while the judge chanted “flog him more”, till the guy lay unconscious. At that time, the judge ordered the floggers to stop.
The force and the brutality of a whip lash is such that even one whip is enough to take virtually the life out of a person. Now, the way the woman was shown being beaten was actually a mockup and it clearly seemed it was purposely designed for the media. Had she been beaten or given out the real punishment it would have been impossible for her to even stand on her own or even be conscious after even a three or four flogs. The timing of the video although perfect for the US administration, just after the new US policy, is suspicious because it has been portrayed that such an event happened months ago and reports that the video is fake. Even if the video is somehow proved to be real, then the issue comes out to be which crime is more heinous, the shoddy flogging of woman by Taliban a few months ago which might have hurt the woman slightly or the death of women and children by the US drones which incidentally happened on the same day that the Pakistani media was busy ranting about the woman being flogged. Nobody cared that women and children were brutally and silently killed by the US drones in Pakistani territory but the media was very busy doing propaganda against Taliban and portraying a bad image of Islam, precisely what the US wants.
Pakistani media should better spend its time on more important issues of national importance like the violations of Indus Water Treaty by India which has made one of Pakistan’s largest rivers by volume of water the Chenab virtually dry. Furthermore, India is constructing even more dams in its territory on Pakistani rivers downstream. It should also cover the plight of the poor families every day whose loved ones die at the missile firings of the US drones. Innocent women and children should not be called collateral damage and each death should be discussed and thoroughly investigated.
United States is to blame for pushing all the militants fighting the US occupation in Afghanistan into Pakistan. US should realize it cannot occupy Afghani territory without the will of the Afghani people by installing corrupt puppet regimes like that of the Karzai government. The US occupation is designed to push the militant Afghanis into Pakistani tribal areas thereby destabilizing Pakistan and destroying the only Islamic nuclear nation from within and Pakistani media is playing at the hands of these neo-cons and neo-crusaders. The sooner, the US government figures out that they cannot kill or subjugate thirty million Afghans and rule them against their will, the sooner this mess would be solved. The Afghanis have a right to live however they feel to live their lives without the need of a foreign power to dictate their affairs. Time is now for a dialog with the Taliban and a deal with these people which brings an end to the violence that has been perpetrated in the name of terrorism. Al-Qaeda and suicide bombing is a US creation which has no place in Islam. In fact, suicide is the worst crime in Islam and the punishment for that is to burn in hell for ever. Osama bin laden used to work for CIA at one time, that is for sure, what we do not know is whether he is still working for the CIA. It is about time, the US had a clear exit strategy and leave Afghanistan permanently and solve problems through a dialog with the Afghani people rather through the use of force. If all the Afghanis who have come to Pakistan after the US occupation leave Pakistan, Pakistan would be a much secure place and Pakistani people would be relieved of the spate of bombings that have devastated this great country of late. Also, US should not be allowed to operate in Pakistani areas without impunity. Any civilian death at the hands of the US drones should be investigated and the US commanders should be tried under international law for killing innocent people. Pakistani blood should not be shed so cheaply and profusely in this criminal war of terror.
Unless the Pakistani people are serious about the true perils that face the Pakistani people like this idiotic war on terror and the fallout from it, the ramifications of the Indus water treaty violations by India which can force many people in Pakistan to die of hunger and the everyday issues of clean and renewable sources of energy like solar, wind and hydro-power, we cannot be a nation worthy to be respected in the comity of nations.
Thursday, April 2, 2009
Increased productivity needed to cut cost of milk: The News
By Mansoor Ahmad
LAHORE: Pakistan obtains 33 million tonnes of milk from 20 million milking animals, compared with over 37 million tonnes obtained by China from 15 million animals and 84 million tonnes milk produced in the United States by 9.1 million cows.
Pakistan is the fourth largest producer of milk in the world after India, United States and China. The productivity of milking animals in Pakistan is, however, very low compared with the European, United States or Chinese breeds.
Dairy experts point out that both India and Pakistan are increasing their productivity by increasing the number of milking animals instead of increasing yield per animal. India produces 102 million tonnes of milk per year from over 75 million cows and buffaloes.
They said that the white revolution the government talks about would not come without increasing the milk yield of its livestock. Low milk yield increases the cost of production of milk. American farmers feed one cow to obtain the same quantity of milk that a Pakistani farmer obtains by feeding 4.5 buffaloes or cows.
They point out that even with low yields, the dairy sector has moved ahead on its own without much government support. This, they added, has made the planners complacent. They said that the dairy sector has the potential to take Pakistan out of its economic woes, if the planners pay more attention to increase the productivity of its milking breeds.
For more on this article, please click on the following link: Increased productivity needed to cut cost of milk: The News
Wednesday, April 1, 2009
United States, an "International Migraine"
Human Rights Violations by the US
US’s support for other like-minded terrorist states such as India and Israel is no surprise since they are all joined at the hip. Each of them is in business to terrorize, subjugate and suppress freedom of the respective countries or territories which they have occupied by force. Suppressing human rights has also been the main objective of these countries with human rights groups severely chastising these terrorist states but to no avail. Guatanamo Bay and Abu Ghraib are telling examples of how the US runs its business. Bush has finally conceded in the latest interview that the occupation of Iraq was a big mistake. Mahatir Mohamed, the ex-Malaysian Prime Minister in an interview with Al-Jazeera has called for the world to declare George Bush and Tony Blair as international terrorists and hold them accountable for the turmoil and misery they have spread throughout the world in the name of the so called “war on terror”. United States is continuing to destabilize neighboring Pakistan where Pakistani troops have already suffered close to a thousand deaths at the hands of the terrorists which the US is unable to handle in Afghanistan. Pakistani cities have also undergone a regular spate of suicide bombings for showing support to the US with the US having no plan or clear cut deadline for withdrawal.
Myopic Policies of the US and Pakistan in the Line of Fire
The Afghanistan government recently conceded that the real solution to the problem is to talk to the Taliban instead of fighting a losing battle. US firepower is of no use in the terrain, training and time the insurgents have at their disposal. If the US does not have support of the local populace, this war can go on for centuries without an end. It is about time Pakistan asked the US for at least 100 billion dollars in damages to the Pakistani way of life where terror has become part of ordinary everyday life. Pakistan should tell the US categorically to find a way that is workable without spreading terror through Pakistani cities. The best way for the US would be to leave immediately from Afghanistan and let the Taliban govern Afghanistan. The US can still maintain a good diplomatic relationship by having a pact with the Taliban emphasizing that no Al Qaeda be allowed to operate from Afghanistan. The sooner the US realizes the importance of diplomacy, the sooner we can stop the whole region and the world at large from descending into the US led chaos. Diplomatic engagement can accomplish much more than any bullet or missile can do and engaging Taliban is the key. Holding talks between the Afghanistan government and Taliban in Saudi Arabia was a step in the right direction. Myopic and gung-ho policies of the US are to blame for the current pandemonium we see everywhere in South Asia.
Indian Oppression in the Occupied Territories of South Asia
India has long been subjugating and oppressing freedom movements from various parts of India. Kashmir is in the forefront because Pakistan has fought three wars with India over Kashmir already and it has come very close to a full scale war with Pakistan on at least three occasions previously. Tamil freedom movement in the south is also not far behind in its scale and resolve where the movement has engaged India and Sri-lanka militarily on a daily basis. Khalistan movement in the Indian Punjab along with freedom movements in Assam, Nagaland and Mizo(90 percent Christian, wanted to join Burma) and parts close to Nepal have also shown their determination from time to time.
Kashmir is an especially troubled region where the indigenous population has fought against Indian occupation for many years now. Hundreds of thousands of Kashmiris have already laid their lives for the cause of an independent homeland. Recently, even Indian journalists have started to take notice of the human rights violations that the Indian Army is committing in the occupied Kashmir. State terrorism from India it seems would never be able to subdue the local population as there has never been any precedence from history where an occupier has ever held on to a territory without the consent of the locals.
Hindu Muslim Conflict in India and India’s International Relations
Muslim population in India elsewhere has also suffered at the hands of the majority Hindus with Gujarat Massacre the most publicized event of them all. Even in Mumbai there has always been a sense of uneasy calm between the Muslims and the Hindus at daggers drawn during the Mumbai bombings a few years back. Even very recently there have been riots in the Hyderabad Deccan between Hindus and Muslims. On a national level India itself has never had good relations with any of its neighbors including China, Nepal, Sri Lanka, Burma and Bangladesh; blaming each of these countries for supporting insurgencies or intrusions in the adjoining areas. Pakistan is no exception.
Militant Attacks in India
The acts of terrorism brought about by these freedom movements are also not so uncommon in India. In fact, they are the result of the oppressive Indian policies towards its own populace. It is interesting to note that some of the acts of terrorism have also been perpetrated by the extremist right wing Hindu parties. Very recently a serving Colonel of the Indian Army was arrested on charges related to terrorism. Blaming Pakistan for all of India’s problems can be a workable cry during election rallies but holds no weight if India itself does nothing to alleviate the problems in Kashmir and elsewhere.
Historical Freedom Movements in India
India has a history of territories that have broken apart from India simply because many South Asians do not find it acceptable that their territories and their lives be governed from the Hindu majority ruling from the center. Many states have already achieved freedom or separation from India. Pakistan and Bangladesh, Sri Lanka, Burma and Chinese Kashmir are the territories which have already separated. In order to avoid any further division of India, the Indian Army is in the habit of using full force to subjugate freedom fighters to keep modern India in one piece and calls these freedom movements as terrorist movements. United States is also hand in hand with India in depriving humanity freedom from oppression and calls many of these movements as terrorist movements. United States and India think they can fool the world in whatever banner or politically correct name they can conjure up.
Towards a Multi-polar World
United States thinks that bank rolling the United Nations can help it run the entire world as it feels free. It is about time the head quarters of the United Nations was shifted from the US to a neutral country or territory say Antarctica and all countries given their due voice. The current UN Security Council is ruled by the rich and powerful for the rich and powerful. Present day UN is just a tool used by the US to wage and legitimize one war after another. United States of Warica as it should be called should stop its bullying tactics and start following the playbook of China if it truly wants to earn respect and succeed as an economy. Waging war and financing current account deficits from borrowed money from the central banks of the entire world using the US treasury bills might have worked in the past but I am afraid in the modern world where there are plenty of sound options available especially with the West in the financial crunch; old strategies would be of no use. It is about time the US saw the writing on the wall; worried about its own economic problems and stopped meddling in the affairs of the entire world. Ethics over the politics of power would prevail.
Pakistani-Americans raise funds for first Pakistan chair at Texas University : APP
WASHINGTON, Mar 31 (APP): The Pakistani‑American community has raised a hefty sum of $ 500,000 in a short time to set up a permanent Chair for Pakistan Studies at the University of Texas in Austin. The chair will be an endowed Chair in Pakistan Studies in the College of Liberal Arts and named after famous Texas Congressman, Charlie Wilson in recognition of his services to the people of Texas, the United States and Pakistan.
According to Pakistani businessman, Iqbal Sheikh, who is Vice President of the Pakistan Chamber of Commerce of USA, the community raised more than half a million dollars to establish the first Pakistani chair in any American University, for which the Temple Foundation of Lufkin, Texas has provided a Challenge Grant of half a million dollars
“The Pakistani community was some time back tasked with raising the matching amount of US $ 500,000. In August 2008 I had the privilege to lead the fund raising drive which has been successfully completed within a few months, thus enabling the University to set up and announce the Pakistan Chair shortly,” Sheikh, who is President and CEO of CyberTex, says.
For more on this article, please click on the following link: Pakistani-Americans raise funds for first Pakistan chair at Texas University : APP
Pakistan, WB sign agreement for poverty reduction: Daily Times
ISLAMABAD: The government of Pakistan and the World Bank signed an agreement at Washington for IDA credit of SDR 321.3 million (US$ 500 million approximately) for Poverty Reduction and Economic Support Operation (PRESO). According to an official statement issued here the credit would support government of Pakistan’s programme to regain and maintain economic stability, bring the economy back on track to a higher growth path while protecting the poor and the vulnerable from adverse shocks. PRESO is a single-tranche Development Policy Credit. The funds will be utilised by the Government of Pakistan for the following key policy areas: Regaining and maintaining macroeconomic stability through increased tax revenue mobilisation, adjustment of fuel prices and power tariffs, improved efficiency of public spending, and strengthened government debt management.
For more on this article, please click on the following link: Pakistan, WB sign agreement for poverty reduction: Daily Times
Obama to propose $2.8 bln additional military aid to Pakistan: The News
WASHINGTON: Obama plans to propose spending roughly $2.8 billion in aid for the Pakistani military, as he steps up the U.S.-led campaign to battle extremists along the Pakistan-Afghanistan border.
That money would be in addition to the civilian aid -- $1.5 billion a year for five years -- that the president called for Friday.
A defense official, who spoke on condition of anonymity, told media the money will be dedicated exclusively to "equipping, training, and building infrastructure directly related to counterinsurgency operations."
Gen. David Petraeus told media in an interview Monday the plan will be called the "Pakistani Counterinsurgency Capability Fund".
For more on this article, please click on the following link: Obama to propose $2.8 bln additional military aid to Pakistan: The News
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